Analyst Jean Ann Salisbury of Bank of America Securities reiterated a Buy rating on DT Midstream (DTM – Research Report), retaining the price target of $110.00.
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Jean Ann Salisbury has given her Buy rating due to a combination of factors that indicate strong future potential for DT Midstream. The company has shown positive progress on projects that are in the pre-final investment decision stage, which suggests potential growth in the near future. Additionally, the New Millennium open season project has been expanded significantly, indicating a larger capacity increase than initially anticipated, which could lead to substantial EBITDA gains if executed successfully.
Furthermore, the potential success of the Borealis open season could result in a material increase in gathering volumes for DTM, leveraging existing pipeline capacity. The recent final investment decision on the Louisiana LNG project is also a positive development for Haynesville volumes and gas pipelines, which aligns with DTM’s strategic interests. Despite the absence of new project final investment decisions, these developments collectively support a positive outlook for the stock, justifying the Buy rating.
DTM’s price has also changed slightly for the past six months – from $90.930 to $97.200, which is a 6.90% increase.